ASIC acts to ensure better disclosure by ALDI of credit card and contactless payment surcharges


ALDI has undertaken to improve signage and other point-of-sale communication about the disclosure of credit card surcharges in its supermarkets following action by ASIC.

ASIC was concerned that ALDI did not:

  • consistently disclose in all of its stores that there is a 0.5% surcharge for consumers paying by credit card, and
  • specifically disclose that transactions made using ‘tap and go’ contactless payment systems are also subject to the 0.5% surcharge, which applies in ALDI stores where either a credit card or debit card is used.

Under the Australian Securities and Investments Commission Act 2001 (ASIC Act), a failure to adequately disclose surcharges, or creating the impression that surcharges do not apply, may be misleading or deceptive.

An ASIC review of signage in a select number of ALDI supermarkets found that the 0.5% credit card surcharge was disclosed in some stores by a sign above the registers and, in others, by a sticker at the registers. In two stores, there were no signs or stickers.

For credit card payments where a PIN or signature is used, disclosure of the 0.5% surcharge is made on the credit card terminal screen after customers insert or swipe their card to pay for their purchase. ASIC considered that this was too late, particularly in stores where there was no other disclosure.

ASIC was also concerned that for all contactless payment transactions, which are currently treated as credit card transactions for all merchants, there was no specific disclosure at all in ALDI stores that these transactions also attract the 0.5% surcharge irrespective of whether customers used a debit or credit card.

In response to ASIC’s concerns, ALDI is introducing a number of measures to improve disclosure of the 0.5% surcharge across all of its stores, including improved signage about the 0.5% surcharge in stores (including at the entrance to the store and at the registers), and further educating its cashiers to communicate the surcharge to customers before finalisation of the transaction.

Deputy Chairman Peter Kell welcomed these improvements and reiterated the need for merchants to clearly disclose any credit card surcharges.

‘Merchants need to be transparent about fees and charges where credit card surcharges apply so that consumers can consider using other payment methods without any additional costs. For example, at ALDI stores, payment by EFTPOS by selecting the ‘savings’ or ‘cheque’ option does not attract a surcharge.

‘Consumers should also be mindful that payments by contactless or “tap and go” cards are currently treated as credit card transactions, meaning that fees may apply where there are surcharges in place, even where they are using a debit card. We urge merchants to ensure consumers are aware of any surcharges that may apply for payments using these cards’, Mr Kell said.

ASIC acknowledges ALDI’s co-operation in this matter.